Utah Sales Tax Guide

Chapter 5: Filing and paying Utah sales tax

You're registered with the Utah State Tax Commission and you've begun collecting sales tax. Congratulations! Remember, those tax dollars don't belong to you. As an agent of the state of Utah, your role is that of intermediary transferring tax dollars from consumers to state and local tax authorities. Let's take a deeper look at how filing Utah sales tax returns impacts your business.

What does it mean to file an Utah sales tax return?

Technically speaking, filing Utah sales tax returns is a two-step process comprised of submitting the required sales data and remitting the collected tax dollars (if any) to state and local tax authorities.

In most states, there are a number of options for submitting sales tax data to the state. Business owners may complete a Utah sales tax filing form and mail it to the Utah State Tax Commission or they can file electronically online. In all states, filing online is recommended.

The filing process forces the business owner to detail their total sales, the amount of sales tax they have collected, and from where. The Utah State Tax Commission wants to be kept up to date on your business growth (or lack thereof) to make sure they are getting the tax dollars due. By completing ongoing filing of monthly, quarterly, or semi-annual, or annual Utah sales tax returns, they stay abreast of your growing company.

When am I required to file my sales tax return?

The Utah State Tax Commission will assign you a filing frequency. Typically, this is determined by the size of your business. State governments typically ask larger businesses to file more frequently. Visit our Utah filing due dates page for more information.

Am I required to file and pay my Utah sales tax at the same time?

Utah sales tax returns must be filed and paid at the same time and are governed by the same due date.

I want to webfile my Utah sales tax. What are my options?

Avalara has built the TrustFile product to allow business owners a quick and easy way to prepare and webfile
Utah sales tax returns. Users can sign up and use the service to prepare Utah returns free for 30-days.

Filers may also file directly with the Utah State Tax Commission by visiting their site and entering your transaction data manually. This is a free service, but preparing Utah sales tax (breaking it down by jurisdiction) can be time consuming - especially for larger sellers.

Can a 3rd party file my sales tax on my behalf?

Yes! Many business owners recognize they are not a tax professional and therefore, choose to outsource their sales tax sales and use tax filing to services like Avalara TrustFile or to an accountant or bookkeeper. This is a normal business practice that can save business owners time and help them avoid costly mistakes due to inexperience and a lack of deep knowledge about Utah sales tax code.

What happens if I file or pay my sales tax return late?

The basis of the interest rate for a calendar year is the federal short-term rate (see Internal Revenue Code 6621) for the fourth quarter of the preceding year.

Late Filing Penalty

Should you fail to file a required tax return by the assigned due date, the Utah State Tax Commission may levee a late filing penalty as follows. It is important to note this penalty may apply even if your business has collected $0 in sales and use tax.

1-5 days late: The penalty is the greater of $20 or 2% of unpaid tax liability.

6-15 days late: The penalty is the greater of $20 or 5% of unpaid tax liability.

16 or more days late: The penalty is the greater of $20 or 10% of unpaid tax liability.

Late Payment Penalty

If you do not pay the required tax to the Utah State Tax Commission on or before your assigned filing due date, you will be assessed a late payment penalty as follows. The possible scenarios have been broken up into the following five categories:

If your Utah tax return is filed by the assigned due date but your tax liability is underpaid, you may be assessed a penalty as follows:

1-5 days late: The penalty is the greater of $20 or 2% of unpaid tax liability.

6-15 days late: The penalty is the greater of $20 or 5% of unpaid tax liability.

16 or more days late: The penalty is the greater of $20 or 10% of unpaid tax liability.

If your Utah tax return is filed after the assigned due date and your tax liability is not paid in full within 90-days, you may be assessed a penalty as follows:

91-95 days late: The penalty is the greater of $20 or 2% of unpaid tax liability.

96-105 days late: The penalty is the greater of $20 or 5% of unpaid tax liability.

106 or more days late: The penalty is the greater of $20 or 10% of unpaid tax liability.

If you are filing an amended return after the original filing date and you fail to pay your outstanding tax liability in full by the amended return date, you may be assessed a penalty as follows. It should be noted the days late refer to the original due date, not the amended due date.

1-5 days late: The penalty is the greater of $20 or 2% of unpaid tax liability.

6-15 days late: The penalty is the greater of $20 or 5% of unpaid tax liability.

16 or more days late: The penalty is the greater of $20 or 10% of unpaid tax liability.

If your Utah tax return is not filed and you do not pay your outstanding tax liability, you may be assessed a penalty as follows:

The penalty is the greater of $20 or 10% of unpaid tax liability.

Negligence, Tax Evasion, and Fraud

In the event of underpaid Utah sales tax due to negligence, tax evasion, or fraud, penalties can range from 10% – 100% or $25,000, whichever is greater.

Do I need to file a return if I didn't collect any sales tax in Utah?

Yes! Once you've successfully registered for and been issued a Sales and Use Tax License, you are required to file at the completion of each assigned collection period regardless of whether any sales tax was collected. This is what is known as a "zero-tax filing".

Failure to submit a required zero-tax filing can result in penalties imposed on your business by the Utah State Tax Commission so don't take this responsibility lightly.

If I close my business, do I need to file a final sales tax return?

Yes! The Utah State Tax Commission requires all businesses to "close their books" by filing a final sales tax return. This also holds true for business owners selling or otherwise transferring ownership of their business.

Does the Utah State Tax Commission offer a discount for filing on time?

Vendor discounts are rebates offered to tax filers by state tax jurisdictions to compensate filers for the effort involved with collecting, filing, and remitting sales tax in a timely manner. Such discounts are frequently cited as outdated by those who see them as a tax loophole for big businesses. With online buying and SaaS services like Avalara TrustFile, the days of managing receipts, balancing books, and writing checks to the state have long since been replaced by computer automation.

The Utah State Tax Commission currently offers a vendor discount (also known as a dealer collection allowance) of 1.31% plus an additional vendor discount of 1.25% for local sales tax filing with a maximum of no maximum and a minimum of no minimum.